Looking for the Right File Sharing System for Your Business? Choose Wisely

If you’re choosing a file sharing system for your company, you’ll likely select from one of two options: Public cloud file sharing solutions like Dropbox, Box.net or Google Drive; or private (self-hosted) file sharing solution providers like Tonido FileCloud and OwnCloud, which offer on-premises, private software to run under corporate infrastructure.

It’s important to make the right choice. Public cloud file sharing systems have advantages, like economy of scale, redundancy and low per-unit cost. But there are serious drawbacks, including a lack of clear ownership, poor data control and deficient privacy and security safeguards. Depending on the size and type of business you run, the disadvantages may far outweigh the benefits of the public cloud.

While public cloud file sharing systems may be suitable for individuals and small businesses with just a few employees, there are better solutions available for larger companies. Public cloud file sharing systems are also not a good choice for educational institutions, health care providers or financial and insurance organizations of any size that have fiduciary responsibility to protect their customers’ data.

Here are four reasons your organization should choose a self-hosted, on-premises private file sharing system instead:

1. Information is precious. We live in an information economy, meaning business processes, intellectual property and customer lists are as important as a company’s core business offering. Information is a vital business asset no matter what type of company you run – including a candy shop or lawn maintenance franchise. This means moving your files from your servers to a third-party provider is like giving your core business assets to someone else for safe keeping. It’s an unnecessary risk with no defined benefits.

2. The honey pot-effect. While only a few third-party providers who store and control a large amount of data intend to cross national and legal boundaries, they make an attractive target for hackers. Cyber criminals would have a lot more to gain by hacking or accessing storage systems run by a company like Dropbox or Google than they would from breaching an individual organization’s private storage. Information that is stored in a centralized infrastructure is also more vulnerable to breaches in other areas of the storage repository.

3. Untrustworthy stewardship. Public cloud companies don’t have a great track record of protecting customer data. Leading public cloud companies have demonstrated that they’re more focused on achieving marketplace dominance than protecting customer data. The following scenario has played out repeatedly: First, a company subsidizes offerings to drive competitors out. Then, once it gains marketplace leadership, the company feels free to dictate the rules, leaving businesses with few or no alternatives. An abrupt change in ownership or leadership can also put data at risk due to poor stewardship.

4. Private cloud services are affordable. Some business leaders fall for the myth that private cloud file sharing systems are expensive or difficult to maintain. But hardware and software evolution has significantly cut prices while streamlining implementation and maintenance requirements. It’s possible now to buy a three terabyte hard drive for around $100, and there are provisioning and maintenance systems available that make administration a breeze. The tools and frameworks available today are fully mature, and people without advanced technical skills can easily operate them.

At its core, the public vs. private cloud file sharing system question doesn’t come down to technology; it’s about who controls your information. Information is power, and if history is any guide, when power becomes concentrated in the hands of just a few players, the outcome is never positive for everyone else. As Lord Acton said, “Power corrupts, and absolute power corrupts absolutely.”

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Security is one of the most important factor to be considering while choosing a file sharing service for your business. Taking security aspects into consideration, there are a broad range of must-have features which needs to be carefully evaluated such as centralized administration, data encryption, audit trails and more.